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OpenAI dropped the price of o3 by 80%

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Re: OpenAI dropped the price of o3 by 80%

#211

Earlier quoted context omitted.

This is almost certainly what they're doing and rebranding the original o3 model as "o3-pro"

Nope, not what we’re doing. o3 is still o3 (no nerfing) and o3-pro is new and better than o3. If we were lying about this, it would be really easy to catch us - just run evals. (I work at OpenAI.)

What's with the dropped benchmark performance compared to the original o3 release? It was disappointing to not see o4-mini on it as well

Re: OpenAI dropped the price of o3 by 80%

#212
post #189

Earlier quoted context omitted.

Prevent Deepseek R2 being trained on it

If only there were people with multiple passports or, I don’t know, Kyrgyzstan. How exactly will passport check prevent any training? At most this will block API access to your average Ivan, not a state actor

Yeah, I just don't see myself using o3 when I have Gemini-2.5 Pro. I don't recall if Google Cloud verified my ID in the past, though. Still, no need to let yet another organization have my data if I'm not getting something better in return.

Re: OpenAI dropped the price of o3 by 80%

#213

Why does OpenAI require me to verify my "organization" (which requires my state issued ID) to use o3?

Don't bother anyway. There are lots of cases of people trying and failing to go through the process, and there is no way to try a second time.

https://community.openai.com/t/session-expired-verify-organi...

https://community.openai.com/t/callback-from-persona-id-chec...

https://community.openai.com/t/verification-issue-on-second-...

https://community.openai.com/t/verification-not-working-and-...

https://community.openai.com/t/organization-verfication-fail...

https://community.openai.com/t/help-organization-could-not-b...

https://community.openai.com/t/to-verify-an-organization-acc...

Re: OpenAI dropped the price of o3 by 80%

#214

how do we know it's not a quantized version of o3? what's stopping these firms from announcing the full model to perform well on the benchmarks and then gradually quantizing it (first at Q8 so no one notices, then Q6, then Q4, ...). I have a suspicion that's how they were able to get gpt-4-turbo so fast. In practice, I found it inferior to the original GPT-4 but the company probably benchmaxxed the hell out of the tu…

It's the same model, no quantization, no gimmicks.

In the API, we never make silent changes to models, as that would be super annoying to API developers [1]. In ChatGPT, it's a little less clear when we update models because we don't want to bombard regular users with version numbers in the UI, but it's still not totally silent/opaque - we document all model updates in the ChatGPT release notes [2].

[1] chatgpt-4o-latest is an exception; we explicitly update this model pointer without warning.

[2] ChatGPT Release Notes document our updates to gpt-4o and other models: https://help.openai.com/en/articles/6825453-chatgpt-release-...

(I work at OpenAI.)

Re: OpenAI dropped the price of o3 by 80%

#215
post #62

Despite the popular take that LLMs have no moat and are burning cash, I find OpenAI's situation really promising. Just yesterday, they reported an annualized revenue run rate of 10B. Their last funding round in March valued them at 300B. Despite losing 5B last year, they are growing really fast - 30x revenue with over 500M active users. It reminds me a lot of Uber in its earlier years—fast growth, heavy investment, b…

The problem is your costs also scale with revenue. Ideally you want to have control costs as you scale (the first you build is expensive, but as you make more your costs come down). For OpenAI, the more people use the product, the same you spend on compute unless they can supplement it with another ways of generating revenue. I dont unfortunately think OpenAI will be able to hit sustained profitability (see Netflix f…

The bulk of AI costs are NOT in inference. They're in R&D and frontier training runs.

The more inference customers OpenAI has, the easier it is for them to reach profitability.

Re: OpenAI dropped the price of o3 by 80%

#216
post #158
post #62

Earlier quoted context omitted.

The problem is your costs also scale with revenue. Ideally you want to have control costs as you scale (the first you build is expensive, but as you make more your costs come down). For OpenAI, the more people use the product, the same you spend on compute unless they can supplement it with another ways of generating revenue. I dont unfortunately think OpenAI will be able to hit sustained profitability (see Netflix f…

"... as you make more your costs come down" I'd say dropping the price of o3 by 80% due to "engineers optimizing inferencing" is a strong sign that they're doing exactly that.

You trust their PR statements?

Re: OpenAI dropped the price of o3 by 80%

#217

For those wondering Yesterday: Today ------------- ------------- Price Price Input: Input: $10.00 / 1M tokens $2.00 / 1M tokens Cached input: Cached input: $2.50 / 1M tokens $0.50 / 1M tokens Output: Output: $40.00 / 1M tokens $8.00 / 1M tokens https://archive.is/20250610154009/https://openai.com/api/pri... https://openai.com/api/pricing/

[deleted]

Re: OpenAI dropped the price of o3 by 80%

#218

Despite the popular take that LLMs have no moat and are burning cash, I find OpenAI's situation really promising. Just yesterday, they reported an annualized revenue run rate of 10B. Their last funding round in March valued them at 300B. Despite losing 5B last year, they are growing really fast - 30x revenue with over 500M active users. It reminds me a lot of Uber in its earlier years—fast growth, heavy investment, b…

[deleted]

Re: OpenAI dropped the price of o3 by 80%

#220
post #122
post #85

when the race to the bottom reaches the bottom, the foundation model companies will be bought by ... energy companies. You 'll be paying for AI with your electricity bill

It'll be the opposite. Large tech companies are already running their own power plants.

Yes - it’s common in traditional industries too. In my home town the aluminum refinery bought the power station to improve reliability (I should add - through upgrades not screwing over the rest of the power users).
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